Gyroscopic Investing

Hi gang, read this and just had to post it here. IMHO this is the single best piece on gold I have ever read. Facts and numbers are powerful things. The writer is not hater, not a lover, just some great analysis and excellent nuance one doesn't see usually see from gold lovers and haters.

Hope you all are doing well.

https://monevator.com/is-gold-a-good-investment/

Kbg wrote: ↑Wed Oct 25, 2023 8:29 am
Hi gang, read this and just had to post it here. IMHO this is the single best piece on gold I have ever read. Facts and numbers are powerful things. The writer is not hater, not a lover, just some great analysis and excellent nuance one doesn't see usually see from gold lovers and haters.

Hope you all are doing well.

https://monevator.com/is-gold-a-good-investment/

Great to see your re-appearance here and have put aside the above for future reading.

Good read, thanks for sharing. Especially interesting was whether gold was for inflation (conclusion was that it wasn't). Also of note was that gold was not correlated with other traditional assets, so my takeaway there is that it may be better for smoothing out a portfolio than for inflation insurance.

One gotcha with the article is that it was done in reference to the pound, and not USD, so the stated inflation dynamics, since they are so currency specific, may not be valid.

I think a little more interesting would be to look at gold's performance against a currency that has experienced a lot of inflation, like Venezuela, or Turkish Lira?

https://www.kiplinger.com/slideshow/inv ... BAF5830014


Investing in Gold: 10 Facts You Need to Know

Gold can do well in times of trouble, but its long-term record isn't so shiny.

Article in the OP misses a fundamental issue with respect to gold:

Federal Reserve Chair Ben Bernanke presented to the committee the Federal Reserve Board's semiannual report on monetary policy. July 13 2011

Ron Paul to Bernanke : "Gold is Money?"

-"No it's a precious metal"

Ron Paul to Bernanke : "Why do central banks hold it?"

- "Tradition."

https://www.youtube.com/watch?v=2Dj9v9s9buk

Central banks globally are buying gold like there is no (fiat) tomorrow:

https://www.kitco.com/news/2023-10-31/C ... s-WGC.html

Dutch central bank hints at a possible seismic event:

https://www.gainesvillecoins.com/blog/d ... d-standard

IMO, gold is insurance against the inevitable. Fiat money has a very poor record historically. We've enjoyed a good run in the modern era, but I think we can all see the light at the end of the tunnel approaching now. $.02